Court Rules
All enforcement actions
SettlementMedium Risk

FTC Finalizes Orders with Cox Media Group, Two Other Firms Settling Charges They Deceived Customers About 'Active Listening' AI-Powered Marketing Service

CMG Media CorporationAugust 27, 2026Federal Trade Commission

Penalty Amount

$930,000

Summary

The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.

Remedy

The companies must pay a total of $930,000 (CMG $880,000, MindSift $25,000, 1010 Digital Works $25,000) to provide redress to affected customers. They are also prohibited from making any misrepresentation about the qualities or features of their advertising or marketing services, the collection and use of voice data, whether consumers have consented to such collection, and the geographic targeting capabilities of their services.

Monetary PenaltyInjunction

Contract Impact

In-house legal teams should review vendor and customer agreements related to marketing and advertising services, particularly those involving data collection from smart devices or voice data. Contracts should include accurate representations about data collection practices, require explicit consumer consent mechanisms, and include warranties that services comply with the FTC Act. Additionally, agreements with marketing partners should contain indemnification clauses for false or misleading claims about data collection or targeting capabilities, and should specify that any AI-powered features are accurately described.

Contract Search Terms

voice data collectionconsumer consentopt-in mechanismactive listeningAI-powered marketingsmart device datatargeted advertisingFTC Act compliancedata privacyadvertising claims

Laws Cited

FTC Act
15 U.S.C. § 45

Violation Types

Entity Details

Entity

CMG Media Corporation

Industry

Advertising

Official Sources

Source Evidence

Entity Name
"CMG Media Corporation, which does business as Cox Media Group"
Fine Amount
"pay a total of $930,000"
Fine Amount
"CMG must pay $880,000 while both MindSift and 1010 Digital Works must each pay $25,000"
Laws Cited
"would itself violate the FTC Act"
Violation Types
"deceived customers by falsely claiming to offer an AI-powered service that could target localized ads based on conversations captured from consumers’ smart devices and that consumers had opted into such targeting."
Violation Types
"the marketing service wasn’t based on voice data, and consumers hadn’t opted into this service."

Related Enforcement Actions

FTC

Federal Trade Commission

The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.

FTC

Chase Nissan LLC

$4.0M

The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.

FTC

Credit Glory LLC

The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.

FTC

Federal Trade Commission

The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.

FTC

Hims & Hers

The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.

FTC

Elite Events and Tickets LLC

$300K

The FTC alleged that Elite Events and Tickets LLC, doing business as Smart Scalpers, violated the Better Online Ticket Sales Act by circumventing security measures to bypass ticket purchase limits for over 2,400 events, reselling tickets at a profit. The proposed order requires payment of $300,000 (with a total penalty of $10.7 million partially suspended) and permanently prohibits the company and its owners from engaging in such circumvention tactics.